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27 imported games approved A new wave of explosion is coming? Technology revolution brings new ways to play

On March 20, game and media stocks bucked the trend. The CSI Animation and Game Index, which reflects the trend of A-share listed game stocks, jumped 5.03% again. The index has rebounded more than 30% after the year, quietly becoming the most outstanding segmentation track, and a number of game ETFs rose over 27% during the year.In addition, the recent chatbot program developed by the U.S. OpenAI fire out of the circle, but also let artificial intelligence once again become the capital market windfall. Some institutions said that the game industry has a natural fit with AIGC (which refers to the use of artificial intelligence technology to generate content), which is expected to bring a new round of outbreak in the game industry, so this will have a transformative impact on the game industry.

Imported online game version numbers out in 2023.

Specific products include Tencent Games’ Manor Hop Hop, Legend of Seven: The Battle of Light and Darkness, NetEase Games’ Just Dance: Party for All, and Beeper Games’ Shine! You Jun Maiden” (the national service of “Racing Maiden”), Heartbeat Network’s “Painted World”, Genesis Dreamworld’s “Mecha Warriors” and You Xing Network’s “Azure Files” and many other key products.

Stepping into 2023, the State Information Agency announced 96 game version numbers in January and 87 game version numbers in February, while this issuance is the import game version numbers, just less than 3 months after the last import game version numbers were issued.

Combing the recent rhythm of the issuance of license numbers, except for the significant relaxation of the number of license numbers in December last year, the time nodes of license number issuance have become more regular since entering 2023, and Huaxi Securities judged that the shortening of the approval process is the main reason for it. “We maintain the judgment of the game industry, the industry supply rebound, new products on line cycle will be correspondingly shortened, and major manufacturers are restarting previously suspended classic hand travel, performance is expected to be in 1H23 to achieve rapid repair, the expected improvement is also expected to boost valuation”.

Guolian Securities believes that the recovery of the game market will be boosted by the resumption of normalized issuance of license numbers. The restoration of the regular issuance of the edition number has brought strong confidence to the market, which is good for the overall plate valuation repair, and the game industry boom continues to rebound. Since the resumption of the issuance of license numbers in April 2022, the quantity and quality of new games on line are also expected to be enhanced. It is recommended to focus on the head companies with abundant license number reserves, strong R&D capability and high quality products.

The game sector is the first to break out after the year.On March 20, games and media stocks rose against the trend. Driven by individual stocks, reflecting the market performance of A-share listed game stocks CSI Animation Game Index 20 again surged 5.03%, the index has rebounded more than 30% after the year, quietly become the most outstanding trend of the segment track.

In terms of individual stocks, none of the companies in the sector fell after the year, Kunlun Wanwei rose 93%, a stone’s throw from becoming a doubling stock, Shenzhou Taiyue rose more than 60%, Baotong Technology, Yaoji Technology, etc. rose more than 50%, and the game sector market has started since the end of last year, the current point is still more than 30% down from the previous highs set in 2020. Index funds, Huaxia CSI animation game ETF, Huatai Berry CSI animation game ETF rose more than 27%.

Recently, the game industry has been favorable. CICC believes that the normalization of the version number, many parties affirm the multi-dimensional value of the game under the healthy development of the industry, 2023 or welcome the big year of supply and demand.

From the perspective of the external environment, the signs of marginal improvement are obvious: 1.

1. At the supply level, the normalization of the rhythm of issuing edition numbers boosts manufacturers’ confidence and is expected to lay the front foundation for subsequent product releases.

2, external evaluation level, the People’s Daily News, a subsidiary of People’s Daily News, and Xinhua Daily News, a subsidiary of Xinhua News Agency, issued an article affirming the positive value of games, pointing out that while promoting the healthy development of the industry, it should “promote the release of new economic, cultural and technological values”.

At the level of industry guidance, the 2022 Game Industry Annual Conference was held in mid-February, and the Ministry of Propaganda proposed to promote “positive energy” as the main tone of online game development, implement the “Online Publishing Technology Innovation Development Plan”, and guide the development of underlying technology innovation in games at the same time. The Ministry of Propaganda proposed to promote “positive energy” as the keynote of online game development, implement the “Online Publishing Technology Innovation Development Plan”, and guide the development of underlying technology innovation in games.

CIMB believes that, along with the implementation of the perfect adult protection in the coming year, the game industry tends to be healthy, standardized and boutique on the supply side under the guidance of the policy, and basically enters a healthy and steady development stage, and is expected to benefit from the normalization of the edition number to meet the big year of new products in the year. On the demand side, domestic game flow has a higher correlation with the head player’s ability to pay, or benefit from the economic recovery. The medium and long-term dimension is expected to achieve breakthroughs and applications in VR/AR, AI technology, game engines, etc. to realize the high-quality development of the game industry.

Technology revolution to create a new model of game.

It is understood that this year, the Ministry of Propaganda will implement the “Network Publishing Technology Innovation Development Plan”, focusing on promoting breakthroughs in online game underlying technology innovation such as virtual reality, perceptual interaction, game engines, motion capture, etc., and promoting the expansion and application of new industries such as meta-universe, digital twin, and cloud games.

Recently, the chatbot program developed by OpenAI in the United States has caught fire out of the circle, which also makes artificial intelligence a windfall in the capital market again. CITIC Investment said that the game industry and AIGC (refers to the use of artificial intelligence technology to generate content) has a natural suitability, is expected to bring a new round of explosion in the game industry, the same game industry will bring transformative impact, it said: first of all, AIGC will reduce production costs, improve quality, improve efficiency, break the game industry “quality, efficiency, cost “Secondly, it will create a new way to play and experience, and AIGC is expected to bring about a transformative improvement in the quality of content; once again, AIGC is also expected to make the supply of boutique games or will grow significantly.

Recently, Baidu Wenxin Yiyin was officially released, and several companies have applied to become Baidu Intelligent Cloud Wenxin Yiyin API call service test companies, and game companies such as Giant Network and China Handspring have also announced that they will access Wenxin Yiyin to further explore the application of AIGC in the game field. Huatai Securities believes that the huge demand contained in the game market itself is a good application scenario for AIGC and other technologies, and the progress of related technologies will further enhance the product quality and comprehensive competitiveness of China’s game industry, thus driving the industry’s long-term growth and valuation improvement.

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